Virtual Organization Strategy Paper

Huffman Trucking was established in 1936 and developed its crinkle end-to-end the eastern United States. They have recently expressed a desire to scatter the business and they are reviewing several options. This field of study will provide a arise analysis on trio expansion strategies including the release of initial overt offerings, the encyclopedism of another firm, and a merger with another firm. Each devisal will offer profits and disadvantages, by contrasting the strengths, weaknesses, opportunities, and threats of each of the 3 strategies, this paper will highlight why Huffman Trucking should undertake away to merge with another firm in value to expand its business. Initial Public offering (initial offering)An initial universe offering occurs when a family releases stock to the creation for the first succession in the special market. Those shares are then made ready(prenominal) for trade in the secondary markets. Several advantages and disadvantages exis t when a union releases an initial public offering (Keown, Martin, Petty, & Scott, 2005, p. 11). Huffman Trucking is privately held company till now. The SWOT analysis of waiver public done IPO is as follows:StrengthsThe offering of stocks to the public raises new roof for the company. The new capital fag be used to induce in the business for future growth and the owners of the firm can easily switch their shares to cash. Owner diversification is also considered an advantage of going public through IPO (Venture associates, 2009, p. 1). WeaknessesOne of the major weaknesses of going public is exhalation of the personal benefits for the owners of the firm. The initial cost of IPO is high and is ongoing. For well-nigh 15% to 25% of capital increase through IPO is spent on expenses related to the public offerings (Keown, Martin, Petty, & Scott, 2005, p. 413). subsequently the firm has gone public, the firm is needed to report sporadically to... If you want to get a esti! mable essay, order it on our website: OrderCustomPaper.com

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